Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A)Buyers determine supply,and sellers determine demand.
• B)Buyers determine demand,and sellers determine supply.
• C)Buyers determine both demand and supply.
• D)Sellers determine both demand and supply.

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Definitions:

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

Explicit Costs

Direct, out-of-pocket payments for goods or services that are made by a business as part of its operations.

Total Economic Costs

The sum of all costs associated with the production of a good or service, including both explicit (direct) costs and implicit (indirect or opportunity) costs.

Implicit Cost

The opportunity costs of using resources that a firm already owns to make its products, as opposed to renting, selling, or using them in another way.